MDK Law shareholder James P. Ware and associate Courtney D. Bhatt secured a major client victory before Division I of Washington’s Court of Appeals on October 15, 2018.  After obtaining a $750,000.00 plus judgment against the creator of a purported EB-5 project in Longview, Washington, the principal defendant of the project sought to have the judgment overturned.  In support of his position, the appellant argued that state courts lacked jurisdiction over the matter and that MDK Law’s client did not act reasonably when she relied upon  false representations in the project’s Private Placement Memorandum (“PPM”).  In rejecting the appellant’s position, Division I noted that the federal law that governs EB-5 investments and the creation of “regional centers” specifically carves out an exception that allows for a victim of a fraudulent EB-5 scheme to sue for damages in state court.  In this instance, MDK Law’s client based some of her claims on the Washington State Securities Action (“WSSA”) and obtained judgment against the appellant based upon a clear violation of WSSA.  Division I found that because MDK Law’s client obtained a judgment based upon violation of WSSA, the trial court had jurisdiction to render judgment against the appellant.

In addition,  Division I rejected the appellant’s argument that reliance upon misrepresentations in the project’s PPM was unreasonable.  In rejecting the appellant’s arguments, Division I noted that the appellant’s arguments rested on semantics and not a meaningful examination of the applicable law or the record.  Division I also noted that the appellant did not challenge the reasonableness of the client’s reliance on appellant’s materially false and misleading statements.  Instead, appellant unpersuasively attempted to argue that MDK Law’s client made misrepresentations that barred recovery.  In rejecting appellant’s argument, Division I noted that appellant’s claims were conclusory and speculative and in no way related to the WSSA claims that MDK Law’s client lodged against the appellant.

The attorneys and other professional staff at MDK Law engage in sophisticated transactional work and litigation in the realms of international contract law and business planning, tax law, and objective-based outcomes.  Our attorneys are licensed in Washington, New York, California, Texas and Oregon. 

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